OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating (FSR) of A+
(Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of
“aa-” of Wilton Reinsurance Bermuda Limited (Bermuda), Wilton
Reassurance Company (Minneapolis, MN), Texas Life Insurance
Company (Waco, TX), Wilton Reassurance Life Company of New York (Rye
Brook, NY), Wilcac Life Insurance Company (Jacksonville, IL) and Wilco
Life Insurance Company (Carmel, IN), collectively referred to as
Wilton Re. A.M. Best also has affirmed the Long-Term ICRs of “a-” of Wilton
Re Ltd (Nova Scotia, Canada) and Wilton Re Finance, LLC
(Wilton Re Finance) (Delaware), as well as the Long-Term Issue Credit
Rating of “a-” on the $300 million 5.875% senior unsecured notes due
2033 of Wilton Re Finance. The notes are unconditionally guaranteed by
its parent companies, Wilton Re U.S. Holdings, Inc. and Wilton Re Ltd.
A.M. Best notes that Wilton Re Ltd’s adjusted financial leverage and
interest coverage are within A.M. Best’s expectation.

Additionally, A.M. Best has upgraded the FSR to A+ (Superior) from A
(Excellent) and the Long-Term ICR to “aa-” from “a” of ivari (Toronto,
Ontario, Canada).This upgrade reflects A.M. Best’s view that ivari has
become a strategic part of Wilton Re Ltd's current and future business
strategies, contributing a significant portion of the group's earnings.

The ratings also reflect Wilton Re’s solid risk-adjusted capitalization
level, disciplined growth strategy, and high quality balance sheet and
stable liability structure, which are focused principally on mortality
risk. The ratings also recognize the ongoing commitment by the company’s
highly rated ultimate parent, Canada Pension Plan Investment Board (CPPIB),
to provide capital to Wilton Re in support of future growth. While
Wilton Re’s operations generate significant capital, which can be
deployed to fund growth, A.M. Best believes that CPPIB would provide
additional funding, if needed. Wilton Re’s continued strategy of closed
block acquisitions is viewed positively, as it enhances the embedded
value of the organization, and its future earnings and capital
generation capabilities.

Partially offsetting these positive rating attributes is the impact of
the continued low interest rate environment, which has modestly affected
earnings on fixed income investments. Operating results trends also have
been dampened recently by adverse mortality trends for the industry and
a recent deferred acquisition cost unlocking. Other offsetting rating
factors include potential execution risks and competition associated
with acquiring larger blocks of business.